38.6c New Delhi, India, Thursday, March 28, 2024
Business

NCLAT Orders CCI To Investigate Flipkart Over Abuse Of Market Dominance

By LawStreet News Network      05 March, 2020 02:03 PM      0 Comments

The National Company Law Appellate Tribunal (NCLAT) ordered the Competition Commission of India (CCI) to start an investigation against Walmart-owned Flipkart for  allegedly abusing its dominant position in the marketspace.

Justice S J Mukhopadhaya-led three-member bench set aside the last CCI ruling that had acquitted Flipkart and further directed it to consult its probe arm, Director General (DG), in order to start a probe against the e-commerce company.

“We set aside the order passed by CCI,” said the three-member bench. The regulator “is directed to initiate probe against Flipkart.” CCI should direct the Director General of its investigative unit to look into the allegations, the tribunal said.

The case was filed before the bench by All India Online Vendors Association (AIOVA). “We set aside the order passed by CCI… and the fair-trade regulator is directed to initiate probe against Flipkart,” said the bench.

AIOVA expressed its joy over the said order and stated that CCI order had innumerable lapses which they had put before NCLAT.

“CCI order had many lapses which we put in front of NCLAT,” an AIOVA spokesperson told ET. “We need to see the detailed order and also whether Flipkart has approached SC (Supreme Court) before any investigations happen.”

“We are delighted with today’s order. We are positive after the e-commerce study findings that CCI will penalize these platforms for violating various provisions of the Competition Act,” said Chanakya Basa, the counsel of AIOVA.

Earlier, on November 6, 2018, the CCI had held that the strategic approaches of Flipkart and Amazon are not infringing upon rivalry standards and dismissed charges of maltreatment of market strength made by AIOVA.

“Looking at the present market construct and structure of online marketplace platforms market in India, it does not appear that any one player in the market is commanding any dominant position at this stage of evolution of the market,” CCI had ruled at that time.

AIOVA had asserted that Flipkart elements occupied with two particular organizations and manhandled predominance through Flipkart India Pvt Ltd, which is into discount exchanging/circulation of books, mobiles, PCs and related frill, and web-based business commercial centre Flipkart Internet Pvt Ltd.

The NCLAT administering comes as the Karnataka High Court has stayed an investigation by the CCI into Flipkart and Amazon over claims that the organizations had enjoyed anticompetitive practices. Legal experts said the NCLAT ruling could have implications for the situation as petitioner Amazon had widely cited the CCI's November 2018 order in which it got a clean chit from the commission.

The CCI had requested a test into Amazon Seller Services and Flipkart Internet, units of the two-web based business commercial centres, on January 13 in the wake of accepting objections from broker body Delhi Vyapar Mahasangh.

 Author – Devansh Dev



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

india-summons-us-diplomat-over-state-dept-remarks-on-kejriwals-arrest
Trending International
India summons US diplomat over state dept remarks on Kejriwal's arrest

After CAA, U.S. wades into Arvind Kejriwal’s arrest. Here's how India responded.

27 March, 2024 04:41 PM
delhi-high-court-warns-against-aaps-call-for-protest-in-court-premises-amid-kejriwal-arrest
Trending Judiciary
Delhi High Court Warns Against AAP's Call for Protest in Court Premises Amid Kejriwal Arrest

Delhi High Court warns Aam Aadmi Party's Legal Cell of severe action for any protest in Delhi Courts against Arvind Kejriwal's arrest.

27 March, 2024 05:57 PM

TOP STORIES

global-entertainment-giants-warner-bros-netflix-amazon-get-relief-from-delhi-hc-in-copyright-protection-case
Trending Business
Global entertainment giants Warner Bros, Netflix, Amazon get relief from Delhi HC in copyright protection case

Delhi HC grants relief to global entertainment giants like Netflix, Amazon, Warner Bros, ordering takedown of copyrighted content on rogue websites.

22 March, 2024 12:13 PM
arvind-kejriwal-arrested-can-cm-administer-a-region-while-being-in-jail
Trending Top Stories
Arvind Kejriwal Arrested | Can CM administer a region while being in jail?

Will President's rule be imposed in Delhi after Kejriwal’s arrest? Read the full article to know more.

22 March, 2024 03:16 PM
merely-because-you-are-politician-cant-bypass-statutory-remedies-procedure-sc-refuses-to-consider-bail-by-kavitha
Trending Judiciary
'Merely because you are politician, can't bypass statutory remedies, procedure,' SC refuses to consider bail by Kavitha

Supreme Court denies bail to politician Kavitha in Delhi Liquor Policy Scam; ED alleges Rs 100 crore illegal gratification.

22 March, 2024 03:34 PM
ponmudi-to-be-sworn-in-as-minister-tn-governor-relents-before-sc
Trending Judiciary
Ponmudi to be sworn in as Minister, TN Governor relents before SC

Tamil Nadu Governor relents to Supreme Court's order, agrees to swear in DMK leader K Ponmudi as Minister after court's rap.

22 March, 2024 03:54 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email